January 8th, 2021
New Illinois Corporate Income Tax Rate Now 4th Highest In USA
A new report by the non-partisan Tax Foundation, headquartered in Washington, D.C., reveals that the Illinois corporate state income tax rate, recently raised from 7.3% to 9.5%, rose from being the 21st highest overall corporate tax rate in the country to 4th highest. Almost all nearby states have lower state corporate state income tax rates, putting Illinois in a very unfavorable position competitively.
The states with the higher corporate state income tax rates are Iowa, 12%, Pennsylvania, 9.99%, and Minnesota, 9.8%.
Illinois’ corporate state income tax rate of 9.5% contrasts with that of Wisconsin at 7.9%, Indiana at 8.5%, Missouri at 6.25% and Kentucky at 6%.
A January 24 article in the Chicago Sun-Times, “Does state tax hike spell doomsday for business?” incorrectly stated that the new Illinois corporate state income tax is 7%.
“The increase in Illinois’ state corporate income tax rate is a devastating blow to our state’s economy,” said Jim Tobin, Chairman of the Illinois Taxpayer Education Foundation (ITEF). “When the governor of Wisconsin said ‘Come to Wisconsin,’ he meant it. Illinois is going to lose many businesses, large and small, to the surrounding states.”
“Even Massachusetts, called ‘Taxachusetts’ for good reason, has a state corporate income tax rate, 8.25%, that is lower than Illinois,” said Tobin.
The Tax Foundation report can be found at the following website: http://taxfoundation.org/publications/show/26974.html#_ftn5.